"We've achieved double-digit sequential growth in our AGP business, driven by brand spending, which is up 34% year-on-year" — Bill Stone
— Bill Stone
03Detailed Report
APPS
Digital Turbine Inc
Period
Q3 2025
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 10, 2026
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Executive Summary
In the third quarter of fiscal 2025, Digital Turbine Inc (APPS) reported significant improvements in revenue and operational efficiency, with total revenues reaching $134.6 million, representing a 13% sequential increase. This performance was driven by heightened advertising demand, particularly in the company’s On-Device segments, which showed record revenue per device. Despite facing challenges with U.S. device volumes, the international On-Device Media segment achieved a remarkable 100% year-over-year growth. However, the company posted a net loss of $23.1 million, highlighting ongoing pressures on profitability. Management is optimistic, citing strategic initiatives aimed at enhancing operational efficiency and revenue growth, particularly through investments in brand partnerships and alternative app distribution strategies. Overall, while the company continues to navigate certain market pressures, its focus on innovation positions it for long-term growth.
Key Performance Indicators
Revenue
Decreasing
134.64M
QoQ: 13.40% | YoY: -5.61%
Gross Profit
Increasing
125.68M
93.35% margin
QoQ: 132.94% | YoY: 97.44%
Operating Income
Decreasing
-12.75M
QoQ: 5.83% | YoY: -37.62%
Net Income
Decreasing
-23.13M
QoQ: 7.42% | YoY: -64.50%
EPS
Decreasing
-0.22
QoQ: 8.33% | YoY: -57.14%
Revenue Trend
Margin Analysis
Financial Highlights
Operating performance metrics reflect improved efficiency, with revenues increasing from $118.7 million in Q2 2025 to $134.6 million in Q3, correlating with a gross profit margin of 93.3%. However, operating income remains a concern with negative operating income of -$12.8 million. Key ratios include:
- Gross Profit Margin: 93.3%
- Operating Margin: -9.5%
- EBITDA: $6.8 million, with a sequential growth in adjusted EBITDA to $22 million.
- Free Cash Flow: $6.4 million, indicating positive cash generation amidst operational losses. The company’s current ratio stands at 1.06, signaling adequate short-term liquidity.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
134.64M
-5.61%
13.40%
Gross Profit
125.68M
97.44%
132.94%
Operating Income
-12.75M
-37.62%
5.83%
Net Income
-23.13M
-64.50%
7.42%
EPS
-0.22
-57.14%
8.33%
Key Financial Ratios
Gross Profit Margin
Excellent
93.30%
Gross profit margin is exceptional, indicating strong pricing power and operational efficiency
Operating Profit Margin
Weak
-0.09%
Operating margin is below industry norms, profitability concerns
Net Profit Margin
Weak
-0.17%
Net profit margin is below industry norms, profitability concerns
Return on Assets
Weak
-0.03%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
-0.14%
Return on equity suggests inefficient capital allocation
Current Ratio
Adequate
1.06
Current ratio meets minimum requirements but limited cushion
Debt to Equity
High Risk
2.54
Debt-to-equity indicates high leverage and elevated financial risk
P/E Ratio
Negative
-1.90x
Negative earnings make P/E ratio not meaningful
Price to Book
Fair Value
1.08x
Price-to-book ratio reasonable for profitable companies
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